Businesses oriented towards growth often engage an external party to handle all its payroll-related activities. Outsourcing of payroll functions is generally done to reduce the internal operational costs related to payroll, enabling the business to devote more time and resources to focus on value-added and revenue-generating tasks.
Payroll outsourcing is carried out widely throughout the UAE, helping organizations to gain payroll solutions within a limited time frame and affordable budget.
When should you consider outsourcing your payroll activities?
Outsourcing any part of your business can feel nerve-racking. After all, it’s your business—you want to be in the driver’s seat. But for many small businesses, worrying about details like payroll can actually keep you from commanding that leadership role.
There are a few signs it may be time to think about outsourcing your payroll activities. If your current system causes frequent mistakes, this could become a liability. This can lead to high costs, wasted time, and lost productivity.
Payroll outsourcing can put your business back in your hands and give you time to focus on the things you love about running your business.
Why should you outsource payroll accounting?
There are a number of good reasons to consider outsourcing your payroll accounting functions. While you may want to retain some of your general accounting operations such as accounts payable and managing your receivables, payroll is a great candidate for outsourcing.
Cost savings
Hiring someone to work on payroll in-house can be expensive. And if you’re spending your own time working on payroll instead of focusing on other aspects of your business, you could be losing money. Outsourcing payroll can be a much more affordable option. In addition to the reduction of the overhead costs, your company can save on software costs, training and support costs, as well as compliance-related expenditures. All this by simply outsourcing payroll accounting to a reliable, professional payroll accounting firm.
Time savings
This can be seen as another facet of cost savings. Every business owner and every manager knows that the old maxim, “Time is money” is most definitely true. Your job as a business owner is to run your business, not to process payroll. Trying to do payroll yourself means taking your time away from other key tasks, like finding customers or creating partnerships.
Penalty protection
Errors can also lead to tax penalties. By having a professional payroll service handle tax compliance, you’ll avoid that headache—it’s an investment in peace of mind.
Management Savings
Top-level managers have to concentrate on other important issues related to the growth of the firm such as planning, setting up of standards etc. so it makes it burdensome for them to focus on payroll tasks, but if they outsource the service then they can get rid of the stress and frustration related to the paychecks, tax deductions, calculations etc.
Business Continuity
When only one person in a business is responsible for payroll (which is often the case), the business becomes extremely dependant on this person to always be around when payroll is done. It creates an unhealthy reliance on one individual for a mission-critical function. If this person suddenly becomes ill or decides to leave, it leaves the business in a difficult position and creates significant risk. When businesses outsource their payroll this risk falls away.
Segregation of Duties
As mentioned above, businesses often rely on one person to do the payroll. It is a good business practice to segregate duties where one person processes the payroll and a second person checks the payroll for correctness. Payroll outsourcing businesses would normally have at least two people working on payroll in order to segregate duties.
Guaranteed legal compliance
The incorrect application of benefits has led to thousands of businesses in UAE seeing payroll as a growing source for reputational and financial risk. It has also sparked some intense discussion regarding the difficulty to fully comply with the UAE’s legislation. Since it is the job of a payroll outsourcing team in UAE to ensure your business is fully compliant with all relevant regulations, you can enjoy peace of mind knowing that your business is not at risk for huge fines and penalties, as well as potential damage in reputation.
All companies must pay tax if they come in the respective category. The payroll service providers handle all the legal issues with great responsibility which makes the companies trust them even more.
It provides security
Company data should be secured no matter what. If any data gets leaked, the whole reputation gets ruined. By outsourcing the payroll services, the companies are made sure that their data is being handled by trustworthy people. Confidentiality of financial data is of paramount importance to every responsible business. As the competition between entities in a developed country like UAE is fierce, the opponents will be trying to gather as much data as possible to overtake their counterparts. The dependable accounting firms will maintain 100% confidentiality about your financial data.
You may have to institute additional measures to monitor the security of the data when you are handling everything by yourself. The same thing is not required when you hire professionals because they’ll have adequate security measures in place. Their existence solely depends on your growth, sustenance and success. Hence, they will not leave any stone unturned in maintaining the secrecy of the financial statistics of your firm.
Professional service
We all know that the experts know how to handle things in an amicable manner. When it comes to payroll processing, it’s always better to seek help from professionals. Their experience and training make them a better option to consider which ultimately helps the companies in getting their functions done properly. Payroll is an important aspect of any business that needs the most professional guidance. Managing payroll requires specialized personnel with extensive knowledge of the payroll tools, rules & regulations.
Business entities in Dubai and other regions in the UAE have been outsourcing payroll services to established firms to achieve both the above-mentioned aims. In that way, organizations can concentrate on business development strategies and plans, while the outsourced accounting and audit firms in UAE will handle the payroll activities.
Get Additional Support
The accounting and audit firms are professionals. They will extend additional support to you, which will be instrumental in achieving your business objectives. Alternatively, you can consider a package of services from the outsourced firm that will be more budget-friendly and conducive for your business.
Outsourcing payroll accounting services implies passing the responsibility to professional and experienced hands. Payroll service providers employ experienced individuals who are familiar with payroll processing and the applicable rules and regulations of the land and the compliance requirements. There is also a much lower possibility of payroll fraud in the outsourced model, especially if there is no division of payroll duties internally in an organization. Outsourced payroll providers also bring to the table their years of experience. In addition to the time savings, having the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time is a great reason to consider outsourcing.
Payroll services by BookRobo
In Dubai, many companies prefer outsourcing their payroll services by approaching external institutions which are experts at dealing with all their payroll needs. That’s why we’ve developed a personalized payroll accounting service at BookRobo where you only pay for what you need when you need it.
We have our team of experts to help entrepreneurs set up their payroll function in Dubai and the rest of the UAE.
Hiring an external payroll outsourcing company in UAE to handle payroll activities gives you access to essential skills and knowledge at a much lower cost. It means a business can do away with the need to hire and train in-house payroll staff, buy an appropriate software package for payroll functions and remain constantly updated about complicated legislation.
Using a trusted, reliable and professional provider to process your payroll in UAE will give you and your staff the reassurance and confidence that your payroll responsibilities are being taken care of properly and efficiently. You can also be confident that all your obligations and responsibilities are being met in a timely and efficient manner, which will eliminate delays, as well as helping to avoid potential fines and penalties.
Payroll is a vital part of how your organization operates. It can also be an incredible blow to the financial side of your organization if not handled correctly.
Our goal is to ensure that your company never misses a payroll and that the process is done correctly so that you avoid any potential fines. That way, you can concentrate on managing what matters most – your business.
To summarize, hiring payroll services for your company will ensure that your accounting responsibilities and costs will be reduced significantly. You can focus your resources, time, and energy on making better business decisions, implementing them and expanding your business while we handle your payroll processes.
Get in touch with us today to outsource your payroll to BookRobo and benefit from our years of experience, at a fraction of the cost of an internal payroll department.